By Jason Douglas

LONDON--Inflation in the U.K. cooled in November, bringing the annual rate closer to the Bank of England's 2% target.

The central bank has signaled that it is poised to raised interest rates three or more times in the next couple of years to keep a lid on price growth, assuming Britain's exit from the European Union in March goes smoothly.

Annual inflation in the U.K. was 2.3% in November, down from 2.4% a month earlier, the Office for National Statistics said Wednesday.

The slowdown was driven by falling oil prices, which offset higher prices for tobacco and alcohol.

The BOE expects inflationary pressure to persist in the U.K. economy as a buoyant labor market spurs faster wage growth.

But officials say the outlook for policy depends on Brexit. Prime Minister Theresa May has yet to convince lawmakers in Parliament to endorse a withdrawal deal negotiated with Brussels, raising the risk of an abrupt and messy break from the bloc in March.

Write to Jason Douglas at jason.douglas@wsj.com

(END) Dow Jones Newswires

December 19, 2018 04:48 ET (09:48 GMT)